A Term Used to Indicate the Same Value as the RMS

question 9

Multiple Choice

A term used to indicate the same value as the RMS value is the _____ value.

• A) average
• B) peak
• C) peak-to-peak
• D) effective

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An accounting method where the first items placed in inventory are the first sold or used.

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.